The streets are talking, and there has been a lot of commotion coming from the sneaker community. When it comes to securing the latest Nike releases, options are becoming limited as Nike has removed some of its productions from Foot Locker. According to recent reports from Forbes, the shift was predicted to happen since last year.
In 2021 70% of Foot Locker’s sales were in Nike products, says the retailer in its 2021 public filings. This year will account for 60% of its merchandise purchases. Although folks think Nike is walking away completely for Foot Locker, we’re here to report that isn’t true. Foot Locker will continue to sell Nike products, representing as much as 55% of its merchandise purchases in the coming year.
A Foot Locker representative released a statement to Forbes saying, “Nike is and will remain one of our most critical and crucial partners. We have no intentions of not working with them.” The effect of a limited supply of Nike items at Foot Locker has already taken a massive loss on the company as news of the changes has spread. The stock immediately took a 30% dive, and some have been recovered.
Foot Locker is already preparing to decline sales between 8% and 10% this year. The New York-based company wants to expand offerings from other brands; Adidas, Puma, New Balance, and Crocs. Last week, the company’s CEO, Richard Johnson, explained to analysts about Nike’s changes, stating, “That’s a tough dynamic to overcome.” Foot Locker isn’t the only retailer that has experienced cutbacks from Nike.
Forbes also reports since the Oregan-based company began cutting back third-party selling, it has dropped many national retailers, including DSW, Zappos, Dillard’s, Urban Outfitters, and Shoe Show.
Roommates, how do ya’ll feel about the news?
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